Shares of Fastly (FSLY) are down 2% at $9.85 at last check, trading at multi-week lows ahead of its fourth-quarter earnings release. Due out after the close today, Feb. 12, analysts are anticipating a breakeven result. FSLY is sitting just above its year-to-date breakeven level and struggling longer term, down 57% in the past 12 months. The equity has pulled back to a historically bullish signal, however, per historic data from Schaeffer’s Quantitative Analyst Rocky White.Per White, FSLY has recently come w ...

Company Performance and Growth Drivers - Strong performance driven by expanding channel partner network, product innovation, advancements in security solutions, and a growing customer base [1] - Shares gained 29.6% over the trailing three months, outperforming the broader Zacks Computer & Technology sector (2.8%) and the Zacks Internet - Software industry (4.2%) [8] - Revenues from customers outside the top 10 grew 20% year over year, reflecting successful efforts to broaden the customer base [3] Product Innovations and Enhancements - Updated Bot Management with a new bot analysis feature, offering better visibility and control over bot management costs [2] - Expanded security offerings, including adaptive DDoS protection, providing automatic defense against sophisticated attacks [5] - Rolled out enhancements to its KV Store, enabling more powerful edge applications through high-performance key-value storage [6] - Launched a beta version of its AI accelerator to boost performance and cut costs for large language model applications, with added support for Google Gemini and OpenAI [9] - Upgraded Next-Gen WAF with faster activation, improved threat detection, and added context through Country and IP Corp/Site lists [9] Strategic Partnerships and Customer Base - Cineverse chose Fastly's Media Video Delivery solution to enhance its digital cinema, streaming, and content distribution capabilities [3] - Channel Partner Program offers benefits such as flexible pricing, added discounts, deal registration, and dedicated support to drive partners' growth and profitability [10] Financial Estimates and Market Position - Zacks Consensus Estimate for first-quarter 2025 revenues is $138.01 million, indicating year-over-year growth of 3.36% [7] - Consensus mark for the bottom line is a loss of 3 cents per share, unchanged over the past 30 days, indicating a year-over-year increase of 40% [7] - Zacks Consensus Estimate for 2025 revenues is $579.97 million, implying growth of 7.03% from 2023 actual [11] - Consensus mark for 2025 earnings is 3 cents per share, indicating a year-over-year upsurge of 124.29% [11] - Earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 81.1% [11]

Company Performance and Outlook - Fastly (NYSE: FSLY) has been a significant disappointment in 2024, struggling with profitability [2] - The company could potentially have a strong year in 2025 if it continues to scale its customer footprint [2] Investment Strategy and Portfolio - The analyst focuses on high-risk, high-reward opportunities, primarily in the technology sector [2] - The analyst's portfolio is concentrated on companies with asymmetric long-term upside potential, including Bitcoin, Tesla, Google, Amazon, and Nvidia [2] Analyst Position and Disclosure - The analyst holds a beneficial long position in Fastly (FSLY) through stock ownership, options, or other derivatives [3]

Fastly’s (FSLY) shares have surged 68.8% in the past month, outperforming the broader Zacks Computer & Technology sector’s 5.8% return and the Zacks Internet - Software industry’s 7.9% growth.FSLY’s shares have also beat industry peers like Reddit (RDDT) , Blend Labs (BLND) and Gitlab (GTLB) .During the same period, shares of Reddit and Blend Labs have gained 23.1% and 1.4%, respectively, while GitLab stock has lost 2.9%.FSLY’s robust stock price performance has been driven by its impressive third-quarter 2 ...

Beaten-down stocks can, at first glance, look like an opportunity to buy in at a cheap price. However, stocks usually have a reason to be down significantly. Buying into these stocks can sometimes mean that a value trap has lured an investor. A value trap is where the decline in a stock’s price makes it feel undervalued, but in actuality, the business fundamentals support the decline in value. This can make investors think they are getting a good deal, but the shares never recover or continue declining. In ...

Company and Industry Overview * **Company**: Fastly, Inc. (NYSE:FSLY) * **Industry**: Cloud Computing, Content Delivery Network (CDN), Edge Computing, Security Key Points and Arguments 1. **Platform Evolution**: Fastly has focused on broadening its platform functionality, unifying solutions, and offering a complete edge solution including content delivery, security, observability, and edge compute [5]. 2. **Customer Diversification**: Fastly aims to diversify its business beyond large media customers, targeting verticals like e-commerce, high tech, transportation, retail, healthcare, and hospitality [10]. 3. **Growth Dynamics**: Outside the top 10 customers, the segment grew 20% year-over-year in Q3, driven by share gains and higher attach rates of various products [9]. 4. **Media Customer Challenges**: Fastly faced volatility in large media customers, but implemented a high-touch customer success motion to address their needs and improve profitability [11]. 5. **Edgio Bankruptcy**: The bankruptcy of Edgio presents an opportunity for Fastly to capture traffic and contracts, potentially accelerating growth in the large media sector [15]. 6. **New Chief Revenue Officer**: Scott Lovett, with experience from Imperva, Akamai, and Cisco, has been instrumental in driving customer acquisition and focusing on security [19]. 7. **Security Focus**: Fastly has invested in security offerings, including DDoS protection, bot mitigation, and web application firewalls, aiming to become a one-stop solution for edge security [26]. 8. **Compute Opportunities**: Fastly's compute architecture focuses on serverless solutions using WebAssembly, offering high performance and developer flexibility [47]. 9. **AI Accelerator**: Fastly launched the AI Accelerator, a product designed to improve user experience for chatbots by reducing latency and costs [50]. Other Important Content * **Financials**: Fastly has repurchased a significant portion of its debt, resulting in a net cash position of over $100 million for the 2024 maturity [37]. * **Operating Margin**: Fastly aims to achieve 35% to 40% incremental operating margin on incremental revenue, driven by organizational efficiency and strategic investments [40]. * **Gross Margin**: Fastly targets 75% to 80% incremental gross margin, supported by scale and revenue from security and compute [41]. * **Free Cash Flow**: Fastly expects to achieve free cash flow breakeven in 2025, despite taking on additional interest expense [43].

After reaching an important support level, Fastly (FSLY) could be a good stock pick from a technical perspective. FSLY surpassed resistance at the 200-day moving average, suggesting a long-term bullish trend.The 200-day simple moving average is a useful tool for traders and analysts, establishing market trends for stocks, commodities, indexes, and other financial instruments over the long term. The marker moves higher or lower along with longer-term price moves, and serves as a support or resistance level.F ...

An analyst upgrade was the news pushing Fastly's (FSLY 16.39%) stock more than 16% higher as the last trading month of the year kicked off on Monday. That made the content delivery network (CDN) specialist quite the outperformer on the market, as the S&P 500 index only managed a 0.2% gain on the day.A likely beneficiary of a rival's stumblesThe person behind the upgrade was Oppenheimer's Tim Horan, who now believes Fastly is an outperform (read: buy) where previously he rated it merely a perform (hold). Hor ...

Fastly (FSLY) shares have declined 52.4% year to date (YTD), underperforming the broader Zacks Computer & Technology sector’s appreciation of 28.1% and the Zacks Internet Software industry’s return of 32.5%.FSLY shares have also underperformed industry peers like Innovid (CTV) , Toast (TOST) and Fortinet (FTNT) , which have returned 102.6%, 138.4% and 62.4%, respectively, YTD.FSLY shares’ subpar performance can be attributed to challenging macroeconomic uncertainties and revenue declines from some of Fastly ...

After reaching an important support level, Fastly (FSLY) could be a good stock pick from a technical perspective. FSLY surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.The 50-day simple moving average is one of three major moving averages used by traders and analysts to determine support or resistance levels for a wide range of securities. But the 50-day is considered to be more important because it's the first marker of an up or down trend.FSLY could be on the verge ...